5 ms·

Most enterprises don't spend >200k an employee. Do people really believe that is a normal salary?

deleted 7y ago
[deleted]
sciencewolf 7y ago
Fully loaded costs (health benefits, 401k matching, cost of computer, HR business partners, etc.) for an employee are roughly 2x what their salary is. So yeah, 200k is a good estimate.
- runako 7y ago
  That's still very high. Average salary is much lower than $100k in the US. Even among college grads with 10+ years of experience, $100k is still a high-end job paying a high-end salary. It's nowhere near the average.
  - downrightmike 7y ago
    Take out all the low wage workers that don't use any apps, and the average goes up.
jitl 7y ago
The assumption is a $100K salary. The other $100K is benefits, management, overhead, etc.
duxup 7y ago
I don't know about most enterprises but I'm guessing any given cost per employee includes a lot more than salary.
- blowski 7y ago
  In London, I'd guess the median salary for most enterprises is around £30-40K. National insurance, a desk, and a few other benefits are probably £20K on top of that.
  - user5994461 7y ago
    If you're talking central London, that should be a fair bit higher.
    - blowski 7y ago
      I'm going on my recent experiences in the City (i.e. the financial district).
  - panzagl 7y ago
    Recruitment, payroll, HR, facilities are other costs.
spencerwgreene 7y ago
The fully loaded cost of an employee for a business is not the employee's salary. "The fully-loaded costs of employees are much higher than their salary: exactly how much higher depends on your locality’s laws, your benefits package, and a bunch of other HR administrivia, but a reasonable guesstimate is between 150% and 200% of their salary." -https://www.kalzumeus.com/2012/01/23/salary-negotiation/ https://www.kalzumeus.com/2012/01/23/salary-negotiation/
- sweeneyrod 7y ago
  Most employees' salaries are not 100k.
  - JumpCrisscross 7y ago
    > Most employees' salaries are not 100k I'd hypothesis that most employees on whom companies spend $10k for cloud software are making $100k+.
runako 7y ago
Obviously the fully-loaded cost of an employee goes beyond the cash compensation. But even so, the average salary in the US is < $60k. Use whatever multiplier you want, $200k is way high. Companies are spending far less than $200k/employee all-in. So to slightly rephrase the OP's question: > Do people really believe that $100k is a normal salary?
- freepor 7y ago
  Yes but companies that are spending $60K on an employee aren’t spending $10K on their SaaS.
  - mm89 7y ago
    I don't know much about jobs outside of tech, but I know most of them at the entry level to a few years of experience in accounting, finance, real estate, etc. do not pay much over $60k (if that) and pretty much all of those jobs are going to use things like Salesforce or other expensive SAAS tools and software.
    - ac29 7y ago
      Salesforce "Enterprise" is $1800/user/year [0], and presumably large enterprises are negotiating better rates than the published ones. Every single employee would need to be using five and a half packages like this at full list price to hit $10k/year.
      - creaghpatr 7y ago
        In Sales you would have SFDC plus some kind of enablement tool like Salesloft/Outreach plus a prospecting tool like Sales Navigator or DiscoverOrg plus enterprise Gmail plus a communication tool like Zoom; and then there's the analytics stuff, the HR/finance parts, etc...10k is probably way too high an estimate but 5k is believable for a B2B startup with a scaling sales team.
  - runako 7y ago
    I won't quibble too much with the precision of the $10k number, which will vary widely. But it's pretty obvious that a basic "customer support" combo like Office 365 + Okta + Zendesk + Intercom + Slack + Zenefits starts to add up to a meaningful percentage of the employee's take-home compensation. (Remember these are positions where $20/hr is a good rate.) And remember, the comparison figure for managers over 50 is roughly $0, which approximates the spend on these functions as far back ago as 2008.
throwaway55554 7y ago
Factoring in all compensation, that is still a ridiculous figure.

deleted 7y ago

[deleted]

Fully loaded costs (health benefits, 401k matching, cost of computer, HR business partners, etc.) for an employee are roughly 2x what their salary is. So yeah, 200k is a good estimate.

runako 7y ago
That's still very high. Average salary is much lower than $100k in the US. Even among college grads with 10+ years of experience, $100k is still a high-end job paying a high-end salary. It's nowhere near the average.
- downrightmike 7y ago
  Take out all the low wage workers that don't use any apps, and the average goes up.

jitl 7y ago

The assumption is a $100K salary. The other $100K is benefits, management, overhead, etc.

duxup 7y ago

I don't know about most enterprises but I'm guessing any given cost per employee includes a lot more than salary.

blowski 7y ago
In London, I'd guess the median salary for most enterprises is around £30-40K. National insurance, a desk, and a few other benefits are probably £20K on top of that.
- user5994461 7y ago
  If you're talking central London, that should be a fair bit higher.
  - blowski 7y ago
    I'm going on my recent experiences in the City (i.e. the financial district).
- panzagl 7y ago
  Recruitment, payroll, HR, facilities are other costs.

spencerwgreene 7y ago

The fully loaded cost of an employee for a business is not the employee's salary. "The fully-loaded costs of employees are much higher than their salary: exactly how much higher depends on your locality’s laws, your benefits package, and a bunch of other HR administrivia, but a reasonable guesstimate is between 150% and 200% of their salary." -https://www.kalzumeus.com/2012/01/23/salary-negotiation/ https://www.kalzumeus.com/2012/01/23/salary-negotiation/

sweeneyrod 7y ago
Most employees' salaries are not 100k.
- JumpCrisscross 7y ago
  > Most employees' salaries are not 100k I'd hypothesis that most employees on whom companies spend $10k for cloud software are making $100k+.

runako 7y ago

Obviously the fully-loaded cost of an employee goes beyond the cash compensation. But even so, the average salary in the US is < $60k. Use whatever multiplier you want, $200k is way high. Companies are spending far less than $200k/employee all-in. So to slightly rephrase the OP's question: > Do people really believe that $100k is a normal salary?

freepor 7y ago
Yes but companies that are spending $60K on an employee aren’t spending $10K on their SaaS.
- mm89 7y ago
  I don't know much about jobs outside of tech, but I know most of them at the entry level to a few years of experience in accounting, finance, real estate, etc. do not pay much over $60k (if that) and pretty much all of those jobs are going to use things like Salesforce or other expensive SAAS tools and software.
  - ac29 7y ago
    Salesforce "Enterprise" is $1800/user/year [0], and presumably large enterprises are negotiating better rates than the published ones. Every single employee would need to be using five and a half packages like this at full list price to hit $10k/year.
    - creaghpatr 7y ago
      In Sales you would have SFDC plus some kind of enablement tool like Salesloft/Outreach plus a prospecting tool like Sales Navigator or DiscoverOrg plus enterprise Gmail plus a communication tool like Zoom; and then there's the analytics stuff, the HR/finance parts, etc...10k is probably way too high an estimate but 5k is believable for a B2B startup with a scaling sales team.
- runako 7y ago
  I won't quibble too much with the precision of the $10k number, which will vary widely. But it's pretty obvious that a basic "customer support" combo like Office 365 + Okta + Zendesk + Intercom + Slack + Zenefits starts to add up to a meaningful percentage of the employee's take-home compensation. (Remember these are positions where $20/hr is a good rate.) And remember, the comparison figure for managers over 50 is roughly $0, which approximates the spend on these functions as far back ago as 2008.

throwaway55554 7y ago

Factoring in all compensation, that is still a ridiculous figure.